Moore County's Emergency Services Advisory Committee [ESAC] is recommending an increase in fire taxes next year; ESAC member Otis Ritter was on hand at a Special Meeting of the Board of Commissioners on Tuesday, May 17 to explain why.
Part of the explanation was something familiar to any driver: fuel costs. Diesel fuel at nearly five dollars a gallon is making fire operations "very, very expensive," Ritter told the Commissioners
The requested three percent increase would not include all departments. For instance, the fire tax in West End would decrease, but there would be an increase for Seven Lakes.
Consolidating squads so they run more efficiently is one way to avoid increasing the fire tax rates, Ritter said. Without consolidation, the only way to pay for increased costs is by either increasing fire taxes or the Advanced Life Support tax, he explained.
“Public Safety is going to come from taxpayers, regardless,” said Ritter.
ESAC has developed a system that divides the County into four quadrants and groups fire squads into three categories: light, medium and heavy. The goal is reducing costs; but if every fire department claims to need equipment that is not necessary for their area it will continue to “increase the tax base -- and that is why a consolidation is necessary,” said County Manager Cary McSwain.
Ritter told the Board that a consolidation of rescue and fire squads is a “good idea” but it is not up to ESAC to force such changes. He noted that more departments are deciding on their own to consolidate.
“Years ago it was territorial; but, today, squadrons are welcoming the help,” said Ritter.
Consolidation of fire departments could, however, place more responsibility on the County to fund fire operations, including paying firefighter salaries. Currently, many squads rely on volunteers to defer costs.
The Commissioners asked the ESAC committee to put together a comprehensive plan for fire department consolidations. A decision has yet to be made by the Board on the fire tax increases request by ESAC.
Increased Fuel Costs Not Budgeted
Increased fuel costs were not figured into the County Manager's proposed budget for Fiscal Year 2011-2012, McSwain told the Commissioners during their budget work session. With gas and diesel prices on the rise, he said, “the crystal ball is very hazy.”
Efforts are underway to reduce fuel consumption in order to avoid cutting services, McSwain said, adding that he is hopeful that some grant money may be able to fill the financial “gap” for fuel.
Currently, the County pays $3.27 per gallon of fuel and has allocated $975,000 in the budget for fuel expenses for the upcoming year. The County has set aside $328,000 in a Grant Match/Contingency Fund in next year’s budget that could help pay for any fuel shortfalls.
Commissioner Tim Lea asked whether a competitive bidding process for fuel might be a way to help decrease costs. McSwain explained that the County currently has a single source contract for fuel, adding that he hoped to reduce costs by developing a list of suppliers and possibly doubling the size of the 5,000 gallon fuel container.
Moore a “Dry County” According to DOR
The Board learned on Tuesday that the NC Department of Revenue [NCDOR] considers Moore County a “dry county,” in which alcohol sales are prohibited. Assistant County Manager Ken Larking explained that the designation is not only inaccurate -- since the County has had ABC stores since the 1930s -- but the "dry" designation could cost the County $70,000 to $90,000 per year in its share of beer and wine taxes collected by the state.
NCDOR wants proof that the County's ABC stores were properly established through a petition, which has sent some county employees searching through archives and old newspapers to find the answer.
Larking said NC DOR is being, “very nit-picky about the whole thing.” The Board asked County Attorney Misty Leland to draw up a resolution to be sent to NCDOR explaining that Moore County is not a “dry county.”
EMS told to “Bid Out” Contract
In accordance with a policy set the current Board of Commissioners, Public Safety Director Bryan Phillips was told to bid out the billing management contract for Emergency Medical Services that is set to expire in August. The county bills health insurance companies for some EMS services.
Phillips had already re-negotiated the current contract with EMS Management and Consultant Company, dropping the fee from from 8 percent to 7.3 percent of the total revenue brought in by the EMS department, approximately $2.5 million.
Chairman Nick Picerno said there is adequate time to bid the project out and it would be in the best interest of taxpayers.
EMS has taken into account historical data in order to allocate money to rescue squads for the upcoming year, Phillips explained. Seven Lakes Fire Squad is set to receive $12,000; Seven Lakes EMS, $29,000; and West End Fire & Rescue, $47,000. Having received over 401 calls last year, Seven Lakes EMS and West End Rescue Squad have both been given an additional $10,000 for the year.
Grant Funding Questioned
The Grant Match/Contingency Funding in the County’s proposed budget for next year is set at $228,000, an increase from last year that Chairman Picerno questioned. With possible funding matches needed for upwards of $675,000; the County has put aside money in a contingency fund to cover any expenses from increased fuel costs to high profile court trial expenses. Chairman Picerno asked why such expenditures could not be paid for as needed.
“Why are we assuming these expenses?” asked Picerno. “It seems like, if there is money in the fund, it seems to get spent.”
County Manager Cary McSwain said any Contingency Funds not used will be transferred back into the fund balance. Currently, McSwain can approve spending up to $50,000; anything above that must be approved by the Board.
Senate May Pass on More Expenses to County
North Carolina Senators are trying to pass the cost of safe keeping of special prisoners down to local governments -- which would be financially “catastrophic,” County Manager McSwain told the Board. The state is also trying to pass on the care and upkeep of secondary roads to counties -- something the Commissioners have opposed -- which would be of “tremendous cost” to the County, said McSwain. He noted that both measures would mean a significant increase in the property tax rates, adding that the County is keeping the pressure on the Senate to avoid these trickle down costs to the County.
Under another legislative option, the County could also see its share of proceeds from the NC Education Lottery cut; the funds are currently used to help pay debt service on school construction bonds.
Finance Cuts Requested
Also during Tuesday's Work Session, the Commissioners asked McSwain to either eliminate the plan to hire an additional financial officer at a salary of $76,000 or terminate the contract of the county's financial consultant. Chairman Picerno noted that $1.2 million was spent on financial software three years ago in an effort to avoid additional salary costs in the finance department.
